Attachment 1: Federal Register Notice. FR VOL.58 NO.105, PART I, A.1.a.(1)(a)(i) DEPARTMENT OF LABOR Employment and Training Administration 20 CFR Parts 626, 627, 628, 629, 630, 631, 637 RIN 1205-AA95 Job Training Partnership Act 1. AGENCY: Employment and Training Administration, Labor 2. ACTION: Interim final rule; amendments 3. SUMMARY: This document amends the interim final rule, which was published Tuesday, December 29, 1992, (57 FR 62004). The interim final rule amended the Job Training Partnership Act (JTPA) regulations to implement the Job Training Reform Amendments of 1992. 4. DATE: Effective Date; December 18, 1992. Removal of Expiration Date: The expiration date of June 1, 1993, for the interim final rule published at 57 FR 62004 (December 29, 1992), is removed. The Department plans to issue a final rule on or before September 1, 1993, and after it has reviewed public comments already received. Notwithstanding the publication of the final rule, the 1992 amendments to JTPA, and the resulting program changes, are effective and operational July 1, 1993. 5. FOR FURTHER INFORMATION CONTACT: Mr. Hugh Davies, Director, Office of Employment and Training Program. Telephone: (202) 219-5580 (not a toll-free call). SUPPLEMENTARY INFORMATION: 1. Background On December 29, 1992, the Department of Labor (DOL or Department) published an interim final rule amending the Job Training Partnership Act (JTPA) regulations to implement the Job Training Reform Amendments of 1992, Public Law 102-367 (Amendments), 57 FR 62004. The interim final rule invited written comments for consideration in developing the final rule, and the comment period closed on February 12, 1993. The interim final rule further indicated that the Department would issue a final rule on or before the June 1 expiration date of the interim final rule, after it had reviewed the public comments received. In addition, the interim final rule set forth guidance on transition and implementation of the Amendments. 2. Need for Amendments The number of submissions in response to the Department's request for comments on the interim final rule was overwhelming. The Department received approximately 400 written sets of comprehensive comments from the JTPA system and other interested parties. Almost all of the submissions provided discrete comments on multiple sections and/or regulatory provisions of the interim final rule. In addition to the sheer volume of the comments received, many of them dealt with a number of complex and/or sensitive issues which the Department believes must be addressed before publishing a final rule. It has become clear that if the Department is to fully consider all of the comments received, additional time is required beyond the June 1, 1993, expiration date of the interim final rule. So as not to have an interruption in the regulations governing JTPA, the Department is amending the EFFECTIVE DATE section of the interim final rule to remove the June 1, 1993, expiration date and its indicating that it plans to publish a final on or before September 1, 1993, after it has reviewed the public comments received. The Department also is taking the opportunity to revise the Transition Provisions set forth at 20 CRF part 627, subpart I, as a result of implementation issues raised after the publication of the December 29, 1992, interim final rule. Section 701(i) of the 1992 Amendments establishes broad discretion for the Secretary of Labor (Secretary) to develop rules and procedures "to provide for an orderly implementation of the amendments made by this Act." To a certain degree, this authority has been reflected in the provisions set forth in subpart I. By putting the Transition Provisions in the regulations, however, the Department has been unable to react in a timely manner to implementation problems as they have arisen. The Department believes that, consistent with the Secretary's authority at JTPA section 701(i), many implementation matters can appropriately be addressed through administrative issuances to the Governors/States. After publication of the Interim final rule, supplemental transition guidance was transmitted via an administrative issuance. Training and Employment Guidance Letter (TEGL) No. 7-92, dated March 8, 1993, to all Governors. This issuance provided interpretations on the transition provisions of the interim final rule and addressed implementation problems not responded to in the interim final rule. This TEGL was published as a Notice in the Federal Register on April 7, 1993. 58FR 18114. Accordingly, subpart I is being revised to remove conflicting transition provisions, to incorporate certain transition guidance provided to all Governors in TEGL No. 7-92 appropriate to the regulations on cost categories, program design requirements, and out-of-school ratio of charging of tuition by institutions accredited under section 481(c) of the Higher Education Act (20 U.S.C 1088(c)0, and to indicate that for matters identified as being appropriately handled by administrative issuance, the Department will transmit guidance directly to the JTPA system, via a TEGL to the Governors. Such TEGL's will be published as Notices in the Federal Register. These amendments to the interim final rule provide the States and SDA's with some flexibility in implementing certain new major features of JTPA made by the 1992 amendments to JTPA, in particular those pertaining to objective assessment, individual service strategies, and the requirement that 50 percent of the participants under Title II-C must be out-of-school youth. The intent of such flexibility is to ensure that such program design changes are undertaken by the States and SDA's in a manner which focuses on the long-term quality and effectiveness of service delivery in JTPA. The Department, however, expects States and SDA's to effect the necessary changes as soon as possible after July 1, 1993. 3. List of Subject in 20 CFR Parts 626 through 631 and 637 Dislocated worker programs, Grant programs, Labor, Manpower training programs. Accordingly, the publication on December 29, 1992, of the interim final rule, which was the subject of FR Doc. 92-31075, and 20 CFR part 627 are amended as follows: EFFECTIVE DATE: 1. In FR Doc 92-31075, the first paragraph of the EFFECTIVE DATES section, in the first column on 57 FR 62004 (December 29, 1992), is revised to read as follows: EFFECTIVE DATE: December 18, 1992. The Department plans to issue a final rule on or before September 1, 1993, after it has reviewed public comments. PART 627 - GENERAL PROVISIONS GOVERNING PROGRAMS UNDER THE ACT 2. Part 627 of Title 20, CFR, is amended as follows: a. The authority citation for part 627 continues to read as follows: Authority: 29 U.S.C. 1579(sa); Soc. 6305(f), Pub. L. 100- 418, 102 Stat. 1107: 29 U.S.C. 1791i(e) b. Section 627.900 is revised to read as follows: 627.900 Scope and purpose. (a) The regulations set forth at parts 626, 627, 628, 629, 630, 310, and 637 of 20 CFR Chapter V (1993) were published as an interim final rule to provide planning guidances for States and SDA's on the changes made to the JTPA program as a result of the 1992 JTPA amendments. See 57 FR 62004 (December 29, 1992). Those regulations and the statutory amendments are effective for the program year beginning July 1, 1993 (PY 1993), and succeeding programs years. For PY 1992, JTPA programs and activities shall continue under the regulations set forth at 20 CFR parts 626, 627, 628, 629, 630, 631, and 637 (1992). Transition and implementation activities for the 1992 JTPA statutory amendments shall proceed under 20 CFR Chapter V (1993), i.e., the interim final rule. (b) In order to provide for the orderly transition to and implementation of the provisions of JTPA, as amended by the 1992 amendments, this subpart I applies to the use of JTPA title II and title III funds allotted by formula to the States. Additional guidance on transition matters may be provided in administrative issuances. The provisions in this subpart are operational during the transitional period for implementing the 1992 JTPA amendments. 627.902 (Amended) c. In 627.902, paragraphs (i) and (j) are removed; and the semicolon at the close of paragraph (h) is removed and a period is added in lieu thereof. d. In 627.904, paragraph (g) is revised and new paragraphs (m), (n), and (o) are added to read as follows: 627.904 Transition and Implementation (g) Cost Categories. (1) Cost categories applicable to PY 1992 and earlier funds will be subject to existing regulations either until the funds have been exhausted or program activity has been completed. In order to assist the orderly transition to and implementation of the new requirements of the 1992 JTPA amendments, an increase is allowed in the administrative cost limitations for PY 1992 funds from 15 percent to 20 percent, with a corresponding adjustment to cost limitations for training and participant support. Specifically, not less than 80 percent of the title II-A funds shall be expended for training and participant support, and not less than 65 percent shall be expended for training. (2) Any prior year carryover funds made available for use in PY 1993 will be subject to the reporting requirements and cost categories applicable to PY 1993 funds. (3) In determining compliance with the JTPA cost limitations for PY 1992, Governors may either: (i) Determine cost limitation compliance separately for funds expended in accordance with paragraphs and (g)(2) of this section; or (ii) Determine compliance for each cost category against the total PY 1992 funds, whether expended in accordance with the Act and regulations in effect prior to the 1992 amendments to JTPA or in accordance with the amended Act and these regulations. Using this option, the total combined funds expended for training and direct training should be at least 65 percent of PY 1992 SDA allocations. (4) In addition to the institutions specified at 627.440(d)(1)(vi)(B) of these regulations, the costs of tuition and entrance fees of a postsecondary vocational institution specified at section 481(c) of the Higher Education Act (20 U.S.C. 1088(c)), may be charged to Direct training services through June 30, 1995, when such tuition charges or entrance fees are not more than the educational institution's catalog price, necessary to receive specific training, charged to the general public to receive the same training, and are for the training of participants. (m) Program implementation. The implementation by the States and SDA's of certain new program design requirements, particularly objective assessment and development of individual service strategies (ISS), may require additional time to fully implement beyond July 1, 1993. Reasonable efforts to implement the provisions of 628.515, 628.520, and 628.530, as soon as possible after July 1, 1993, are expected to be made. However, it is not expected that every new participant will initially receive objective assessment, ISS, and referral to non-Title II services for a period of six months, or January 1, 1994. (n) Out-of-school youth ratio. The 50-percent out-of-school participants requirement for Title II-C will be phased in during PY 1993 and will not be the subject of compliance review until PY 1994, beginning July 1, 1994. During PY 1993, however, SDA's must show significant improvement in the proportion of out-of-school youth being served and performance in increasing the service ratio will be monitored by the States and DOL during this implementation period. (o) Administrative issuances. Other implementation issues may be handled by administrative issuance. ETA will transmit such guidance directly to all Governors via a Training and Employment Guidance Letter (TEGL). Such TEGL's will be published as Notices in the Federal Register. (Sec. 701(i)). 627.906 (Amended) e. In 627.906, in the first sentence of paragraph (a), the phrase, "especially those" is removed. Signed at Washington, DC, this 28th day of May, 1993. Carolyn M. Golding Acting Assistant Secretary of Labor (FR Doc. 93-13116 Filed 5-28-93: 4:13 pm)

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List of Directives Extended To obtain a copy of attachment(s), please contact Deloris Norris at the Office of Regional Management at (202) 219-5585.

To obtain a copy of attachment(s), please contact Deloris Norris of the Office of Regional Management at (202) 219-5585. A. Canceled GALs B. Current GALs Attachment A General Administration Letters Canceled by this Checklist 47-81 4-83 10-89, Ch. 1 6-90 4-93 4-93, Ch. 1 7-93 Attachment B Checklist - General Administration Letters as of May 31, 1995 Corres. Dir. Exp. Symbol No. Subject Date Date ------ ----- --------------------------------- --------- -------- TEUMC 4-88 Unemployment Insurance (UI) 07/25/88 11/30/96 Internal Security (IS) Policy TMCB 6-89 Employment Security Mail 04/14/89 06/30/95 TWT 15-90 Operating Instructions for 08/21/90 08/31/96 Implementing the Omnibus Trade and Competitiveness Act of l988 Amendments to Trade Adjustment Assistance Program, Involving Changes Affecting Basic and Additional TRA Entitlement TWT 15-90, Change 1 11/23/90 08/31/96 TWT 15-90, Change 2 05/16/91 08/31/96 TWT 15-90, Change 3 07/17/91 08/31/96 TEURL 4-91 Allocation of Costs of Assessing 03/22/91 03/31/96 and Collecting State Taxes TEUM 3-92 Unemployment Compensation for 11/22/91 11/30/95 Ex-Servicemembers (UCX) Amendments Contained in the Emergency Unemployment Compensation Act of 1991 TEUMI 4-92 Emergency Unemployment 11/27/91 11/30/95 Compensation Act of 1991, As Amended TEUMI 4-92, Change 1 02/10/92 11/30/95 TEUMI 4-92, Change 2 02/13/92 11/30/95 TEUMI 4-92, Change 3 06/04/92 11/30/95 TEUMI 4-92, Change 4 07/09/92 11/30/95 Checklist - General Administration Letters as of May 31, 1995 Corres. Dir. Exp. Symbol No. Subject Date Date ------ ---- ------------------------------- -------- -------- TEEL 7-92 Agricultural Recruitment System 04/15/92 04/30/96 TEUMI 10-92 Operating Instructions for 07/06/92 07/31/95 Implementing the Amendment to Section 231(a)(20 of the Trade Act of 1974 Contained in H.R. 5260 TEUMI 10-92, Change 1 09/16/92 07/31/95 TEUMI 12-92 Consolidation of the Attachments 09/01/92 09/30/95 to GAL 4-92 Incorporating GAL 4-92, Changes 1 through 4 TEURA 12-92, Change 1 02/16/93 09/30/95 TEUMI 12-92, Change 2 03/10/93 09/30/95 TEUMI 12-92, Change 3 05/19/93 09/30/95 TEUMI 12-92, Change 4 08/20/93 09/30/95 TEUMI 12-92, Change 5 10/27/93 09/30/95 TEUMI 12-92, Change 6 01/04/94 09/30/95 TEUMI 13-92 Designation of Authorized State 10/09/92 10/31/95 Employment Security Agency (SESA) Staff for Contact by the Funds Accounting Branch in the U.S. Treasury Department - Receipt of SESAs' Trust Fund Confirmation Letters TWTA 2-93 Notification to Adversely Affected 11/23/92 11/30/95 Workers of Certification of Eligibility to Apply for Trade Adjustment Assistance (TAA) Benefits TMCB 8-93 Direct Accountability of State 05/26/93 05/31/96 Employment Security Agency (SESA) Postage Costs TMCB 8-93, Change 1 07/27/93 05/31/96 TEUMI 13-93 Phaseout of the Emergency 09/30/93 09/30/95 Unemployment Compensation (EUC) Program TEUMI 2-94 Alternate Extended Benefit (EB) 10/27/93 10/31/96 Triggers - High Unemployment Period Checklist - General Administration Letters as of May 31, 1995 Corres. Dir. Exp. Symbol No. Subject Date Date ------ ---- --------------------------------- -------- -------- TWT 3-94 Certifications Waiving Workers' 12/02/93 12/31/96 Participation in Training Under the Trade Adjustment Assistance (TAA) Program TMCS 5-94 Acquisition, Use, and Disposition 01/24/94 01/31/96 of SESA Real Property TWT 6-94 Transitional Adjustment Assistance 01/04/94 12/31/96 Provisions of the North American Free Trade Agreement (NAFTA) TWT 7-94 Operating Instructions for 12/28/93 12/31/96 Implementing the Amendments to the Trade Adjustment Assistance for Workers Program in Title V of the North American Free Trade Agreement (NAFTA) Implementation Act TEES 9-94 Migrant and Seasonal Farmworker 05/18/94 06/30/96 (MSFW) Report Form ETA 5148 TEES 10-94 The Employment Service State 07/20/94 06/30/96 Agency Complaint Referral Record (ETA Form 8429) TEES 1-95 Procedures for H-2B Temporary 11/10/94 12/31/95 Labor Certification in Nonagricultural Occupations TG 2-95 Directory of State Employment 11/30/94 11/30/95 Security Agency Officials TWT 3-95 Operating Instructions for 05/03/95 05/31/96 Implementing the Break in Training Provision Under the Trade Adjustment Assistance Program (TAA) and the NAFTA Transitional Adjustment Assistance Program (NAFTA-TAA) TEELN 4-95 Interim Prevailing Wage Policy 05/18/95 06/30/96 for Nonagricultural Immigration Programs

Unemployment Insurance Quality Appraisal Results for FY 1993. To obtain a copy of attachment(s), please contact Deloris Norris of the Office of Regional Management at (202) 219-5585.

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AWBA Where the Date of the Disaster Occurs During the Quarter July 1 through September 30, 1993. To obtain a copy of attachment(s), please contact Deloris Norris of the Office of Regional Management at (202) 219-5585.

For a copy of attachment(s), please contact Brenda Tollerson at (202) 219-8502.